Pinnacle charters ship to transport wood pellets to Japan

By Erin Voegele | January 22, 2020

Pinnacle Renewable Energy Inc., a wood pellet producer based in Canada, recently announced company representatives attended a christening and launching ceremony for a ship Pinnacle is chartering to transport wood chips to Japan.

The ship, S1130, is a Handy class vessel of almost 40,000 deadweight tonnage (DWT). Pinnacle said it will charter the vessel from NYK Bulk & Projects Carriers, a Japanese ocean carrier, on a long-term charter to transport its industrial wood pellets from Canada to Japan.

The ceremony has held at Shikoku Dockyard in Takamatsu City, Japan. Pinnacle CEO Rob McCrudy named the vessel the M/V New Pinnacle.

A statement released by Pinnacle indicates the charter is an important element to its approach to logistics as the company continues to participate in expanding Asian markets.

"The logistics model we are using will provide both ourselves and our customers the widest possible delivery flexibility at the lowest possible cost, and further opens the significant Japanese market to Pinnacle." said Vaughan Bassett, senior vice president for Sales and Logistics. "We very much look forward to servicing our Japanese customers with this brand new Japanese built vessel."

Pinnacle has signed three contracts with customers in Japan over the last six months. Recent contracts with Japanese customers include a long-term, take-or-pay off-take contract with Mitsui & Co. Ltd. for 100,000 metric ton per year of industrial wood pellets beginning in 2023, and a long-term, take-or-pay off-take contract with Mitsubishi Corp, for 110,000 to 120,000 metric tons per year of industrial wood pellets beginning in 2021.